Learn More About The Payroll Savings Plan

You can now set up a Payroll Savings Plan to purchase electronic savings bonds in TreasuryDirect. The new Payroll Savings Plan feature allows individual primary account owners to make recurring purchases of electronic Series EE and Series I Savings Bonds, funded by a payroll allotment/direct deposit. Simply set up your Payroll Savings Plan and schedule a regular payroll allotment/direct deposit with your employer and your payroll office will send the allotment/direct deposit to your TreasuryDirect account.

Setting up your Payroll Savings Plan in TreasuryDirect. Before asking your employer to start your payroll allotment/direct deposit, you must first set up a Payroll Savings Plan in your TreasuryDirect account. You will need to provide registration and purchase information. For more information, see How do I purchase savings bonds in TreasuryDirect?.

You can purchase either Series EE or Series I Savings Bonds and the purchase amount can be any amount from $25 to $10,000. Electronic savings bonds are always purchased at full face value. For more information about savings bonds, see Learn more about Security Types.

Your TreasuryDirect account can be marked as a type 22 (checking) or 32 (savings). We will accept either type.

The incoming credits from your payroll office will result in the purchase of a Payroll Zero-Percent Certificate of Indebtedness (Payroll C of I) within your TreasuryDirect account. Each time your Payroll C of I balance reaches your designated purchase amount, a savings bond will be issued. (For example, if your payroll allotment/direct deposit is $10 each pay period, and you have chosen a purchase amount of $25, after your third allotment/direct deposit is received, a $25 savings bond will be purchased from your Payroll C of I and the remaining balance will be $5 until the next allotment/direct deposit is received.) See Learn more about Payroll Zero-Percent Certificate of Indebtedness.

Please Note: A Payroll Zero-Percent Certificate of Indebtedness is a Treasury security that does not earn any interest. It is intended to be used as a source of funds to purchase Series EE and Series I Savings Bonds through the Payroll Savings Plan.

Stopping your payroll allotment/direct deposit and redeeming your Payroll C of I. You must contact your employer (payroll office) if you would like to have your payroll allotment/direct deposit stopped. There is no need to edit your Payroll Savings Plan information when you stop your allotment/direct deposit.

You may redeem all or part of your Payroll C of I by going to ManageDirect and selecting the Redeem Securities text link. You may choose to redeem the full amount or a partial amount. You must select a payment destination bank for the Payroll C of I. Note: Redemption of your Payroll Zero-Percent C of I does not stop your payroll allotment/direct deposit.

Viewing Payroll Savings Plan transaction records. You can access history records about savings bonds purchased through the Payroll Savings Plan, view records about your Payroll C of I transactions, and view changes made to your Payroll Savings Plan by clicking the History tab.